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Optimizing Gibson’s Bookstore of East Lansing

Optimizing Gibson’s Bookstore of East Lansing. Marisa Skillman Liz Vultaggio. Project Introduction. The bookstores have a cyclical process of acquiring and selling textbooks Rushes begin at the semester start, but preparation for this begins 6 months prior

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Optimizing Gibson’s Bookstore of East Lansing

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  1. Optimizing Gibson’s Bookstore of East Lansing Marisa Skillman Liz Vultaggio

  2. Project Introduction • The bookstores have a cyclical process of acquiring and selling textbooks • Rushes begin at the semester start, but preparation for this begins 6 months prior • Bookstores managers must determine the number of books to order, but how?

  3. Objectives • Optimize the ordering of books and determine the most cost efficient transportation system. • Goal programming satisfying Gibson’s Ordering method. • Minimize surplus books by ordering based on last year’s sales • Satisfy the student demand based on enrollment

  4. Transportation Systems • Two methods: • Yellow Freight • This method is only used for packages over 500lbs • United Postal System • Discounts available for heavier packages

  5. Methods • A goal programming problem 1st minimizing surplus based on previous sales • 2nd goal programming maximizing books ordered based on student enrollment • The transportation issue was solved using the optimized books to order and using current pricings from UPS and Yellow Freight.

  6. Results • Our numbers for book orders were less than the number of books Gibson’s ordered. • We accounted for student sellbacks by subtracting a random number multiplied by the previous sales. • We also modeled a goal programming problem using student demand as the 1st priority and previous sales 2nd

  7. Transportation Results • UPS was determined as the most economical method of delivery • Delivery of all books $3542 • The use of Yellow Freight for all 500lb shipments from the publisher doubled delivery costs • Delivery of all books using UPS and Yellow Freight $6846

  8. Discussion & Conclusion • An optimal method for ordering books was discovered. • Randomness of student sellbacks are accounted for in the equation • Previous Sales heavily determines the book order • Student demands are represented • Transportation results show that unless Yellow Freight discounts its prices, it should not be used.

  9. Any Questions???

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